Pakistan, ADB deepen reform partnership with focus on private sector

September 2, 2026 (MLN): Pakistan and the Asian Development Bank (ADB) discussed ways to deepen cooperation in structural reforms, private-sector development, investment and access to finance during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and ADB Vice President for South, Central and West Asia Yingming Yang.

Yang acknowledged Pakistan’s recent progress in macroeconomic stabilisation, fiscal management and improvement in the external account, while also appreciating the country’s stronger sovereign credit ratings.

He linked the developments to continued reform efforts and improving economic fundamentals.

Muhammad Aurangzeb said the government was moving beyond macroeconomic stabilisation towards sustainable and inclusive economic growth, with investment, exports, employment creation and greater private-sector participation emerging as key priorities.

The Finance Minister emphasised the need to institutionalise reforms across domestic resource mobilisation, public finance, energy, insurance and pensions to build a stronger foundation for long-term economic growth.

The discussions placed particular emphasis on improving access to finance for small and medium-sized enterprises (SMEs), which the government considers critical for boosting employment, investment and exports.

The two sides also explored ways to integrate Pakistani SMEs into global value chains and improve their competitiveness.

Muhammad Aurangzeb welcomed ADB’s expanding role beyond conventional sovereign financing, particularly its growing support for private-sector operations and public-private partnerships.

He also stressed the need to mobilise greater domestic and private capital through innovative financing mechanisms, co-financing arrangements and increased participation from international development and financial institutions.

Potential areas for expanded ADB cooperation included infrastructure, transport, clean energy, water resource management, climate resilience and other development priorities.

The meeting also covered Pakistan’s insurance transformation programme, pension reforms, public-private partnership initiatives and measures to strengthen project preparation and implementation capacity.

Yang reaffirmed ADB’s commitment to supporting Pakistan’s development agenda and said the Bank’s strategic priorities were closely aligned with the government’s reform programme.

He expressed readiness to expand support for private-sector development, SME value-chain financing and other priority sectors.

The ADB vice president also underscored the importance of maintaining fiscal discipline as Pakistan transitions towards sustainable growth. Both sides reviewed ongoing and pipeline policy-based operations aimed at advancing structural reforms and supporting long-term economic transformation.

Muhammad Aurangzeb stressed that future ADB assistance should remain aligned with Pakistan’s priorities of private-sector-led growth, export competitiveness, improved access to finance, infrastructure development, climate resilience and social protection.

Senior officials from the Finance Division, Economic Affairs Division and ADB also participated in the meeting.

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